DUBAI: The Philippines may have been named the top investment destination for 2018, but the government must provide more impetus particularly for foreign investors and encourage them to pour capital into the country, an economist said.
Foreign companies, with their huge financial assets, could further contribute in the current administration’s efforts – especially on infrastructure – if only there was a more encouraging environment.
“We still have a lot of problems, the focus is for local companies but for foreign companies there are limited options,” Alvin P. Ang, who is also director of Ateneo Center for Economic Research and Development, told Arab News. “We are moving along that line, but that cannot be achieved in a year’s time.”
Despite this, government is confident that critical reforms it wants in place are right on track.
“Our efforts to create a more business- and investor-friendly environment are gaining traction in the past year and a half and the world is already seeing it,” Socioeconomic Secretary Ernesto M. Pernia said.
The US News & World Report on Monday said that the Philippines was the best country to invest in for 2018, beating more developed economics such as Singapore, Australia, the United Kingdom and France.
The rankings were based primarily from 6,000 business decision makers scoring countries on eight equally weighted country attributes: entrepreneurship, economic stability, favorable tax environment, innovation, skilled labor, technological expertise, dynamism and corruption.
“In contrast to declining inflows of foreign direct investment, or FDI, to Southeast Asia as a whole, the Philippines continued to perform well, according to United Nations data. In years to come, the country is expected to receive more FDI from within the region from powerhouses like China that are looking to utilize labor in developing nations,” US News & World Report said.
And one of the investment areas where the Philippines needs foreign capital is infrastructure, Ang said. “We need extra money [on infrastructure], as local companies have maxed out.”
President Rodrigo Duterte’s administration last year announced a multibillion-dollar “Build, Build, Build” initiative promising to usher in a “golden age of infrastructure” in the next five years. Infrastructure spending would be raised to around 7 percent by 2022 from nearly 4 percent of GDP in 2017.
The $180 billion program includes major projects such as new bridges and roads, a new terminal for Clark International airport, rail projects and the country’s first subway. Thus far, 24 infrastructure flagship projects have been approved, amounting to P1.126 trillion ($21.71 billion).
With most of the flagship projects completed or nearly so by 2022, our infrastructure would be at par with our Asean neighbors,” Pernia said.
Presidential spokesperson Harry Roque meanwhile attributed the Philippines’ top ranking on government’s “fiscal discipline, stable monetary policy, achievable infrastructure program and improved revenue collection,” among others.
Roque likewise assured investors that the government would to continue to implement sound economic policies to improve ease of doing business in the country.
“In pursuance to this, we have recently enacted the anti-red tape law, giving fixed periods for local governments to act on pending applications lodged with them,” he said in a press briefing on Tuesday.
Philippines may be top investment destination for 2018, but more needs to be done, economist says
Philippines may be top investment destination for 2018, but more needs to be done, economist says
Saudi Aramco to tap bond market amid low gearing at around 5%, CEO says
- Amin Nasser said the oil giant’s gearing ratio, a financial metric that compares a company’s debt to its equity, is currently around 5%
- He reaffirmed the company’s commitment to maintaining high dividends
RIYADH: Saudi Aramco will continue tapping bond markets in the future despite maintaining one of the lowest gearing ratios in the energy industry, according to a top official.
In an interview with Bloomberg, Aramco President and CEO Amin Nasser said the oil giant’s gearing ratio, a financial metric that compares a company’s debt to its equity, is currently around 5 percent. That’s significantly lower than the industry average, where many peers operate with levels between 15 and 20 percent.
“Our gearing today is around 5 percent — still one of the lowest gearing, you know. It’s almost half of the average compared to other energy industry players in the market, and we will continue to tap into that additional bond markets in the future,” Nasser said.
He continued: “But we have a low gearing ratio, which still, as you consider it, is very low compared to any players in the markets.”
The low gearing ratio, which reflects strong financial discipline and limited reliance on debt, is part of what enables Aramco to maintain stability amid market fluctuations.
Gearing is commonly used by analysts and investors to assess a company’s financial leverage, with lower ratios often indicating a stronger balance sheet and reduced financial risk.
In the interview, Nasser also reaffirmed the company’s commitment to maintaining high dividends. “We have a strong balance sheet, and our dividend is one of the highest, the highest globally. We’re expecting to pay dividends that go to the majority shareholder and other shareholders, which is the government, of $85.4 billion this year.”
He said the company benefits from having spare capacity, which allows it to bring more barrels to the market. “For every million barrels, that will have a huge impact on our net income. I would say it will give you a $10 cushion for every million barrels that you put into the market.”
Nasser added: “We have today close to 3 million barrels of spare capacity, so other companies do not have that to cushion any drop in prices. For us, we do have that spare capacity that is healthy, strong, and when you put it, it allows you to increase significantly your net income.”
He emphasized the company’s ability to withstand lower oil prices due to its operational efficiency and robust infrastructure.
“We are the lowest cost producer. Our extraction cost is $3, and it still is $3. And with low extraction cost, healthy balance sheet, and our investment that is continuing to be capturing opportunities that we have,” Nasser said.
Closing Bell: Saudi main index closes in red at 10,990
- Parallel market Nomu dropped 123.20 points to close at 26,809.75
- MSCI Tadawul Index declined by 0.70 percent to 1,403.80
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, as it shed 62.35 points, or 0.56 percent, to close at 10,990.41.
The total trading turnover of the benchmark index was SR10.20 billion ($2.72 billion), with 169 of the listed stocks advancing and 74 declining.
The Kingdom’s parallel market Nomu also dropped 123.20 points to close at 26,809.75.
The MSCI Tadawul Index declined by 0.70 percent to 1,403.80.
The best-performing stock on the main market was Saudi Reinsurance Co. The firm’s share price soared by 9.31 percent to SR50.50.
The share price of East Pipes Integrated Co. for Industry increased by 7.83 percent to SR124.
Arabian Drilling Co. also saw its stock price edging up by 5.12 percent to SR84.20.
Conversely, the share price of Makkah Construction and Development Co. declined by 5.65 percent to SR96.80.
On the announcements front, Al Moammar Information Systems Co., also known as MIS, said that it signed a contract valued at SR58.93 million with the Saudi Data and Artificial Intelligence Authority to operate and maintain the National Unified Visa Platform.
In a Tadawul statement, the company stated that the contract is valid for 36 months, with no related parties involved in the deal.
MIS added that the contract is expected to have an impact on the company’s financial results starting from the third quarter of this year.
The share price of MIS rose by 1.66 percent to SR134.80.
Al Kathiri Holding Co. said that its subsidiary, Saraya Al Diyar Investment Co., has entered into a long-term lease agreement valued at SR143.1 million with the Aseer Municipality to build and operate a mixed-use hotel and commercial complex in Abha.
Under the deal, Saraya Al Diyar Investment Co. will establish a four-star hotel with 180 keys, as well as retail and entertainment facilities in the project that spans a total area of 53,000 sq. meters.
The new contract is in line with Al Kathiri Holding’s strategic direction to diversify its investment portfolio and expand into promising, high-impact sectors, aligning with the goals of Saudi Vision 2030, the company said in the statement.
Al Kathiri Holding Co.’s share price was unchanged at SR2.08 by the end of Thursday’s trading.
Saudi Arabia’s Jeddah airport soars to top three in Middle East airport rankings
- KAIA followed Dubai International Airport and Qatar’s Hamad International Airport in the regional rankings
JEDDAH: King Abdulaziz International Airport has secured third place in the 2024 Airport Connectivity Index for the Middle East, marking a significant milestone in Saudi Arabia’s ascent as a global aviation hub.
The ranking was announced at the Air Connectivity Conference 2025, held in Shanghai, where the Airports Council International Asia-Pacific and Middle East unveiled its annual index.
KAIA followed Dubai International Airport and Qatar’s Hamad International Airport in the regional rankings.
This recognition underscores both KAIA’s growing operational capacity and Saudi Arabia’s broader Vision 2030 goal of transforming the Kingdom into a leading logistics and transportation center. As part of that strategy, Saudi Arabia aims to handle 330 million passengers annually, connect to 250 international destinations, and transport 4.5 million tonnes of cargo by 2030.
Mazen Johar, CEO of Jeddah Airports Co., said the latest ranking reflects the airport’s progress in expanding its air network and enhancing connectivity.
“This milestone demonstrates our commitment to operational excellence and aligns with our strategy to establish KAIA as a pivotal global hub,” he said in a statement to SPA.
Johar noted that the airport’s improved ranking is a result of sustained efforts to boost competitiveness, upgrade infrastructure, and elevate passenger experience in line with national transport goals.
KAIA also held the third spot in the 2023 edition of the index, announced during ACI’s annual assembly in Riyadh.
As part of its long-term development plans, JEDCO is implementing upgrades aligned with the National Transport and Logistics Strategy. These enhancements aim to increase KAIA’s passenger capacity to 114 million annually by the end of the decade.
In 2024, KAIA served 49.1 million passengers — up 14 percent from 2023 — marking the highest annual passenger volume recorded by any airport in the Kingdom. The busiest day was December 31, when over 174,600 passengers passed through the airport. December also set a monthly record, with traffic exceeding 4.7 million passengers.
In the Asia-Pacific rankings, Shanghai Pudong International Airport claimed the top spot, followed by Incheon International Airport in South Korea and Guangzhou Baiyun International Airport. Hong Kong International Airport was recognized as the most improved airport in terms of connectivity across both regions.
Headquartered in Hong Kong with a regional office in Riyadh, ACI Asia-Pacific and Middle East represents airports in some of the world’s fastest-growing aviation markets. The Airport Connectivity Index— developed with PwC in 2023 and refined in its third edition — measures network scale, frequency, destination economic weight, and connection efficiency.
According to ACI, air connectivity in the Middle East grew 28 percent year on year, while Asia-Pacific saw a 13 percent increase, reflecting a 14 percent average growth across both regions. These gains signal a robust post-pandemic recovery and the continued momentum of global air travel.
Saudi EXIM Bank targets African markets with 4 new MoUs
- Deals come as Saudi exports to Africa surged 20.6% year on year to SR7.84 billion in March
- Saudi delegation held in-depth discussions with leaders of several international financial institution
RIYADH: Saudi Arabia is accelerating the expansion of its non-oil exports into African markets, with the Saudi Export-Import Bank securing four new strategic agreements to strengthen trade and investment ties across the continent.
Saudi Export-Import Bank CEO Saad bin Abdulaziz Al-Khalb signed memoranda of understanding with Africa50, the Ghana Export-Import Bank, Blend International Limited, and Guinea’s Ministry of Planning and International Cooperation, the Saudi Press Agency reported.
The deals were finalized on the sidelines of the African Development Bank Group’s annual meetings, held in Cote d’Ivoire from May 26 to 30.
The newly signed deals come as Saudi exports to Africa surged 20.6 percent year on year to SR7.84 billion ($2.09 billion) in March 2025, reflecting growing trade ties between the Kingdom and the continent.
Al-Khalb said the bank’s participation in the meetings aims to deepen international trade relations and forge partnerships that support Saudi non-oil export growth in African markets.
The SPA report added: “He stated that the memoranda of understanding are an extension of the bank’s efforts to promote trade exchange, stimulate development projects, and enable local exporters to export their services and products to African markets through effective and extended partnerships, contributing to supporting sustainable development goals and enhancing economic integration.”
He also described the gathering as a valuable opportunity to boost economic cooperation and engage with officials from export credit agencies and financial institutions across African countries.
The agreements were signed by Saudi EXIM CEO Saad bin Abdulaziz Al-Khalb, along with Alain Ebobisse, CEO of Africa50; Sylvester Mensah, CEO of the Ghana Export-Import Bank; Ravi Gupta, managing director of Blend International Limited; and Ismail Nabeh, minister of planning and international cooperation of Guinea.
The MoU with Africa50 is aimed at enhancing cooperation in infrastructure projects by partnering with Saudi companies. The agreement with the Ghana Export-Import Bank will focus on exploring cooperation opportunities and enhancing bilateral exports of services and products.
Meanwhile, the MoU with Blend International Limited is aimed at targeting broader trade opportunities and international partnerships. The deal with Guinea’s Ministry of Planning and International Cooperation seeks to bolster development projects and investment in priority sectors, enabling Saudi exports of engineering services and industrial supplies.
Also, on the sidelines of the event, Al-Khalb and his delegation held in-depth discussions with leaders of several international financial institutions, focusing on expanding trade ties and boosting the flow of Saudi non-oil exports into African markets.
Asia’s first Saudi sukuk ETF launched in Hong Kong
- Launch coincided with the opening of the Capital Markets Forum
- ETF is managed by Premia Partners, with BOCHK Asset Management Ltd. serving as investment adviser
RIYADH: Hong Kong has launched Asia’s first exchange-traded fund tracking Saudi sovereign sukuk, marking a major development in financial cooperation between East Asia and the Middle East.
The Premia BOCHK Saudi Arabia Government Sukuk ETF, listed on the Hong Kong Stock Exchange, follows the iBoxx Tadawul Government & Agencies Sukuk Index. It includes both riyal- and US dollar-denominated sukuk issued by the Saudi government and related agencies.
The ETF is traded under stock codes 3478 for the Hong Kong dollar counter and 9478 for the US dollar counter. It has been approved by the Securities and Futures Commission of Hong Kong. It offers quarterly US dollar distributions, with fees capped at 0.35 percent and an expected annual tracking difference of around -2 percent.
The launch coincided with the opening of the Capital Markets Forum, a two-day event hosted by Saudi Tadawul Group and Hong Kong Exchanges and Clearing Ltd., aimed at boosting cross-border investment.
This year’s forum, held under the theme “Powering Connections,” focuses on strengthening economic and capital market ties between the Middle East and East Asia.
The ETF is managed by Premia Partners, with BOCHK Asset Management Ltd. serving as investment adviser.
Speaking at the forum, Mohammed Al-Rumaih, CEO of the Saudi Exchange, said the CMF is becoming “a leading global platform for collaboration and dialogue on the future of capital markets and economic transformation.”
“We aim to strengthen ties with both local and international investors and to reinforce the Saudi capital market’s position as a leading global hub, serving as a bridge between capital markets in the East and West,” Al-Rumaih said.
Bonnie Y. Chan, CEO of Hong Kong Exchanges and Clearing Ltd, said that the partnership with Saudi Tadawul Group underscores the strong ties between the two exchanges.
“This second edition of the forum will serve as a dynamic platform to connect our broad base of investors and issuers, while encouraging deeper dialogue and collaboration among the capital-raising hubs of Mainland China, Hong Kong, and the Middle East,” Chan said.
The forum featured a series of keynote speeches and panel discussions focused on global economic trends, investment strategies, financial innovation, and the integration of sustainability into financial markets.
As part of the event, the Corporate Access Program enabled direct engagement between investors and senior executives from listed companies and capital market institutions across the region, fostering greater transparency and dialogue.
Commenting on the ETF’s launch, Faris Al-Ghannam, CEO of HSBC Saudi Arabia said: “The corridor between China and Saudi Arabia is becoming even more compelling. The resilient activity in the Kingdom’s private and capital markets in Q1 reflect Saudi Arabia’s position as a refuge for foreign investors from global volatility. The Kingdom’s continued liberalization of its foreign investment regulations is also creating new opportunities for investors in Asia and globally.”
He said: “Chinese and Saudi Arabian corporates in sectors such as energy, technology and infrastructure are reinvigorating the Silk Road. We expect this trend to continue as tariff uncertainty persists and corporates double down on managing risks and building resilience in their supply chains.”
The launch of the ETF, alongside the Capital Markets Forum, reflects Saudi Arabia’s commitment to elevating its capital markets on the global stage. These efforts align with the Kingdom’s Vision 2030 strategy to enhance financial sector integration and attract foreign investment.
At the same time, Hong Kong continues to strengthen its role as a vital conduit for capital flows between East and West, reinforcing its position as a leading international financial hub.
